BBC Pvt. Ltd. and Working Capital Challenges Harvard Case Solution & Analysis

BBC Pvt. LLC (BBC), chemical companies, was in urgent funds to provide an important contract. BBC was able to produce a product that involved low levels of investment in the form of fixed assets. Although the product was of poor quality due to its cost-effective production, the company was able to pass that cost advantage for its customers end, allowing the BBC to maintain its position in the market. In addition, the company sells the product mainly on credit and therefore the preferred option for buyers.

bbc pvt ltd case solution

bbc pvt ltd case solution

BBC followed a traditional approach to working capital management. Its assets were much more than its liabilities. The company paid its creditors promptly loan term. However, in terms of credit management, the company has followed a random approach. He extended credit sales for large periods and large reserves in the form of raw materials and finished products as a result of excessive blocking of working capital. In this case, BBC had the opportunity to a prospective contract, which will require significant investment immediately. Managing Director to make a decision about how to obtain and manage sufficient resources to update BBC, which is necessary in order to ensure his contract. "Hide
by Nimisha Kapur, Sandeep Goel Source: Richard Ivey School of Business Foundation 6 pages. Publication Date: November 29, 2012. Prod. #: W12346-PDF-ENG

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BBC Pvt. Ltd. and Working Capital Challenges

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